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Posted: Sun Sep 07, 2008 11:58 pm
by andrewgoodman121
What damages your credit rating or history worst
an IVA or Bankruptcy or are they both the same when it comes to the future.
They are always both mentioned along the same lines but which one has a more damaging and lasting affect on your credit history.
Posted: Mon Sep 08, 2008 5:12 am
by darren85
Hey Andrew, I'm not to sure on the answer to that, but I'm fairly confident that BR stays on your credit history forever where as an IVA comes off after 6 years, Where an IVA last for 60 months or 5 years these count on your credit file, so if you have an IVA for 5 years, 1 more year after that then the IVA will be taken off of your file.. Still, I'm not 100% on BR, but I'm sure this has a ever lasting mark on your file..
Regards
Darren
Posted: Mon Sep 08, 2008 6:38 am
by kallis3
Hi Andrew.
They are both the same. Both will drop off your file after 6 years. You can then start to think about building up your credit again if that is what you want to do.
Posted: Mon Sep 08, 2008 9:19 am
by Skippy
BR drops off your credit file after 6 years, the same as an IVA.
Posted: Mon Sep 08, 2008 9:36 am
by darren85
Arr.. well we can't all be correct hehe.. Sorry about that mate.. I could of sworn I read something before about BR, but, definitely do not take my word for that.. lol
Posted: Mon Sep 08, 2008 9:42 am
by Skippy
If you are asked in the future if you have ever been bankrupt you have to answer yes, so it's always with you in that sense, but it's off your credit files in 6 years - only 4 1/5 years to go for me!
Posted: Mon Sep 08, 2008 12:59 pm
by MelanieGiles
Whilst both affect your credit rating for six years, often future lenders will take more notice of a fully satisfied IVA than a bankruptcy if you are looking to borrow money in the future.
Posted: Mon Sep 08, 2008 3:37 pm
by andrewgoodman121
i always thought that an IVA was less stringent compared to Bankruptcy
Posted: Mon Sep 08, 2008 4:56 pm
by MelanieGiles
Not on paper - but it really depends upon the attitude and policy of future lenders to be honest. Some take a hard line and others are far more flexible towards ex-IVA customers.
Posted: Mon Sep 08, 2008 6:01 pm
by helen c
If you have, like me, have a satisfied IVA and passed the six years so it's not on my credit file now, nor are any defaults will banks & lenders be aware that I have had an IVA?
The reason I ask is I have just applied for a current bank account and was not told no or yes but was referred.
I know my credit files are fine and I am on the electrol role so not sure why this has happened.Is it because they have a way of knowing I once had an IVA?
Posted: Mon Sep 08, 2008 6:48 pm
by MelanieGiles
Perhaps this is the case Helen - when you know the outcome it may be worth asking what data they were relying on.
Posted: Mon Sep 08, 2008 7:57 pm
by Skippy
Could it be because you haven't had any credit for the last 6 years? I know that sounds daft, but I seem to remember reading that when the IVA or BR drops off your credit file you'll have a completely clear file, which in the eyes of some lenders is as bad as having credit problems.
Posted: Mon Sep 08, 2008 8:31 pm
by Adam Davies
Hi
Skippy is spot on
Having no credit record can be a problem as creditors have nothing to base their risk on.
Slowly but surely you can rebuild your file,starting with a bank account is a good start
Regards
Posted: Mon Sep 08, 2008 8:35 pm
by Skippy
I'm using my bank account and mobile phone contract to try and rebuild mine, as all 3 report to the credit references agencies.
Posted: Tue Sep 09, 2008 6:30 am
by helen c
Well I do have some credit available on my file. I have a couple of catalouge accounts and a mobile phone contract and my payments are all up-to-date.Just hope they take thoses into account when making a decision about a current bank account.